The Lord’s Prayer
Our Father, who art in heaven, hallowed be thy name. Thy Kingdom come, Thy Will be done, on earth as it is in heaven. Give us this day our daily bread and forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but deliver us from evil. Amen.
9:00 am
Good Morning and Merry Christmas! My wife and Ihad planned to spend a very quiet Christmas Eve when one of our daughters-in-law mentioned to my wife, “I have always looked forward to celebrating Christmas Eve at your place.” Another daughter caught wind of it and said, “Count us in!” It snowballed from there to the other children and grandchildren. It now appears that we may have as many as 24 people celebrating Christmas Eve at our home. Thankfully we have the provisions to make it happen. Ahh, tradition!
SPX futures pushed the envelope in the overnight market, reaching 6911.70 before easing back. Monthly, weekly, daily and hourly Cycles all proclaim the end is near. Today’s half-day session is likely to have low volume without the resolution of a reversal. Abu Dhabi gave it its best shot and still no new ATH.
ZeroHedge remarks, “And there it is: the Santa Rally which we predicted would begin a week ago after Abu Dhabi removed much of the AI capex fears festering the OpenAI ecosystem, the S&P has rocketed to a new record high on Tuesday, with stocks looking set for a quiet start to the abbreviated Christmas Eve session.”
VIX futures tested yesterday’s low at 13.64, but did not go lower. VIX may have made its Master Cycle low, as all requirements have been met. However, Wave Bs can be unpredictable. With VIX at its 52-week low, there is only one way to go.
TNX is lower as part of a corrective process that may take it down to Intermediate support at 41.16 before going higher. One fly in the ointment is today’s treasury auction. Yesterday’s 5-year auction nearly sent TNX to test neckline resistance at 42.04, reaching 42.02. Should today’s auction be lightly attended, we may see yields soar, as $44 billion of 7-year notes are being offered. Will the buyers be there?
Gold futures hit 4554.90 last night, crushing its long-time target of 4500.00 in an extended Master Cycle. Cycles may extend to meet long-held targets, as is the case with gold. However, extended Cycles may give the wrong impression that they can last even longer. While the crowd is chasing gold, there are other factors at work that may temporarily halt the uptrend. Gold may give an aggressive sell signal beneath the Cycle Top at 4386.00.
Silver rose to 72.75 in the overnight session, but has now reversed back beneath 71.00. An aggressive sell signal may be had beneath the trendline at 70.00.